Brexit is now directly damaging business investment in Britain

A
man giving out leaflets to tourists is blown by the wind in
Westminster in London, Monday, Feb. 8PA Images

LONDON — Brexit is now directly affecting the investment
decisions of British firms, according to a survey from the
Confederation of British Industry.

Its survey of 357 businesses found over 40% of businesses said
Brexit has affected their investment decisions. Of those, 98%
said the impact has been negative.

The companies which reported Brexit had negatively influenced
their investment decisions cited general uncertainty over the
UK's future.

The only positive impact they reported was the relative weakness
of the dollar against the sterling.

Almost 60% of firms that responded to the survey said that Brexit
had not affected their investment decisions.

The CBI, which represents 190,000 UK businesses, has been
emboldened in its calls for a softer Brexit since Prime Minister
Theresa May lost her parliamentary majority in June's general
election, which many saw as a loss of her mandate for a hard
Brexit.

Last week it
doubled down
on its call for Britain to stay in the Single Market and
customs union until a final EU deal is in force.

Rain Newton-Smith, CBI's chief economist, said:

"It is reassuring that the majority of businesses that responded
to our survey do not feel that Brexit has changed these vital
spending plans.

"But we must have our eyes wide open: an overwhelming number of
those that did report an impact said it was negative. Government
must do all it can to reverse this. Today’s investments are
tomorrow’s jobs.

"The Government’s increasingly clear commitment to a single
transition stage is welcome. Firms are making investment
decisions right now, that will last for years to come. They need
more sense of clarity and continuity to support jobs and
prosperity.

"To help British business remain optimistic and keep uncertainty
at bay, the Government must work quickly to agree the terms of
the transition and future trading arrangements."